ily Caikr wk feor I)K all yearc monthly salary of $12,100. There is no overtime

Question

ily Caikr wk feor I)K all yearc monthly salary of $12,100. There is no overtime pay. Lily's income tax withholding rate is 10% of gross pay. In addition to payroll taxes, Lily elects to contribute 5% monthly to United Way. JDK also deducts $250 monthly for co-payment of the health urance premium. As of September 30, Lily had $108,900 of cumulative earnings. Kequirenents 1. Compute Lily's net pay for October. 2. Journalize the accrual of salaries expense and the payment related to the employment of Lily Carter.

Explanation / Answer

Lily's Net pay for october:

Monthly Salary $12,100

Less:-

Tax Deduction ( $1,210)

United Way Deduction ($ 605)

Health Insurance Payment ($250)

Net Payment $10,035

Journal Entry

1) Salary a/c dr $12350

To Tax Payable $1210

To Health Insurance Premium Payable $500

To Amount payable to United Way $605

To Salary Payable $10,035   

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.